Correlation Between Worldcoin and OFFICIAL TRUMP

Can any of the company-specific risk be diversified away by investing in both Worldcoin and OFFICIAL TRUMP at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Worldcoin and OFFICIAL TRUMP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Worldcoin and OFFICIAL TRUMP, you can compare the effects of market volatilities on Worldcoin and OFFICIAL TRUMP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Worldcoin with a short position of OFFICIAL TRUMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worldcoin and OFFICIAL TRUMP.

Diversification Opportunities for Worldcoin and OFFICIAL TRUMP

0.69

Correlation Coefficient

Worldcoin  OFFICIAL TRUMP

Poor diversification

The 3 months correlation between Worldcoin and OFFICIAL is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Worldcoin and OFFICIAL TRUMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICIAL TRUMP and Worldcoin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Worldcoin are associated (or correlated) with OFFICIAL TRUMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICIAL TRUMP has no effect on the direction of Worldcoin i.e., Worldcoin and OFFICIAL TRUMP go up and down completely randomly.

Pair Corralation between Worldcoin and OFFICIAL TRUMP

Assuming the 90 days trading horizon Worldcoin is expected to generate 1.16 times more return on investment than OFFICIAL TRUMP. However, Worldcoin is 1.16 times more volatile than OFFICIAL TRUMP. It trades about 0.1 of its potential returns per unit of risk. OFFICIAL TRUMP is currently generating about -0.04 per unit of risk. If you would invest  86.00  in Worldcoin on April 22, 2025 and sell it today you would earn a total of  29.00  from holding Worldcoin or generate 33.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Worldcoin  vs.  OFFICIAL TRUMP

Worldcoin

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Worldcoin are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Worldcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

OFFICIAL TRUMP

Risk-Adjusted Performance

Very Weak

Over the last 90 days OFFICIAL TRUMP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for OFFICIAL TRUMP shareholders.

Pair Trading with Worldcoin and OFFICIAL TRUMP

The main advantage of trading using opposite Worldcoin and OFFICIAL TRUMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worldcoin position performs unexpectedly, OFFICIAL TRUMP can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OFFICIAL TRUMP will offset losses from the drop in OFFICIAL TRUMP's long position.

The idea behind Worldcoin and OFFICIAL TRUMP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.